USA: Maryland to Tax digital advertising services

Recently Maryland became the first state to place a tax on digital advertising. This suggestion was considered in many other states last year but Maryland is the first to approve this tax. This is targeted towards large companies such as Google, Amazon, Facebook etc.  Taxes on digital advertising have recently been introduced by many other countries such as Austria, France, and UK. At the same time, google notified its customers that they would increase taxes on their services.

Tax percentage is at 2.5% for companies making between 100 million USD and less than 1 Billion in global revenue and this rate goes up to 10% for companies making more than 15 billion USD.

This bill was initially vetoed but the Democratically – controlled legislature overrode the Veto and therefore this law was passed however it might come into more legal challenges in the future. If this law survives it could encourage more states to start adopting this new legislature.